Palestinian President Mahmoud Abbas has asked Prime Minister Rami Hamdallah to head a new national unity government.
The announcement comes after the feuding Hamas and Fatah parties agreed on a reconciliation pact last month.
"This is a letter of assignment to our brother Dr. Rami Hamdallah, an order to form the new transitional government. I wish him success in the difficult task which he will undertake."
However the two sides have yet to publish a list of ministers.
It is reported that disputes remain primarily over who should be foreign minister.
Officials say a list of names is pending Abbas's final approval this week.
Fatah and Hamas developed separate governments after Hamas seized control of Gaza in 2007.
Earlier, Israel suspended U.S.-sponsored peace talks with the Palestinians after Abbas agreed to the unity pact with Hamas, which is viewed by Israel as a terrorist group.
Israel has threatened Abbas's administration with financial sanctions if he pursues the deal.
